$1 billion within 3 days: stock market records 10-year high

Last update 08:00 | 01/06/2017

VietNamNet Bridge – Billions of dollars have been poured into the stock market within a short time, returning the market to its peak of 10 years ago. 

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Although records have been beaten, the market is different from the ‘bubble period’ in 2007. In early May, there were more sellers than buyers, a time when many people often buy.

A number of shares have continued rising in price after hitting new records. The VN Index is still on the rise after reaching a 9-year peak. Analysts said it has increased by 11 percent so far this year, or two times higher than the same period of 2016.

The trading value is now at a record high with the average trading value of over VND5 trillion in each session in May.

There were some trading sessions where the trading value reached VND7 trillion, or 2-3 times higher than some years ago and 1.5-2 times higher than the average level in 2016.

As such, within 3-4 days, the stock market witnessed $1 billion worth of transaction value on the Hanoi and HCMC bourses.

There were some trading sessions where the trading value reached VND7 trillion, or 2-3 times higher than some years ago and 1.5-2 times higher than the average level in 2016.

Analysts said the liquidity record of VND10 billion per trading session or $1 billion for two sessions is reachable as the stock market activity increases day after day. Most investors believe that it is now a good time to join the market.

Though the stock market increased rapidly in the first five months of the year, there has been no sign showing the decline in the cash inflow.

Foreign investors tend to increase purchases with the trading value of several hundred billions of dong in each trading session.

The market’s capital scale has also soared. The number of shares has increased by 10 times compared to 10 years ago. The capitalization value has increased by hundreds of times thanks to many big names in the market such as Sabeco, Habeco, VietJetAir and ACV.

The VN Index has been standing firmly at 700 points and is marching towards the 750 point threshold.

Analysts said there is a basic difference between the current busy market and the 2007 hot market.

Le Quang Tri from Tri Viet Securities said the current cash flow is sustainable, while the market confidence is high, which is a contrast to the hot money flow and the ‘following-the-crowd investment’ movement in 2007.

Tong Minh Tuan from VCB Securities commented that the most important thing is that the stock market has more good commodities this year to offer.

“Foreign funds are very excited and they have taken action. I think the market would be even more busy towards the end of the year,” Tuan said.

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This entry was posted in Economics - Kinh tế, Thị trường chứng khoán and tagged , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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